Precision Farming Market Size
Precision Farming Market size in 2018 was over USD 4 billion and is estimated to grow at around 15% CAGR from 2019 to 2025.
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Precision farming is getting really popular among farmers because it helps them make better use of their land. They can now see exactly what's going on in their fields, thanks to new technology that collects data about the soil, plants, and weather. This information helps farmers make better decisions about how to manage their farms. They can now- Identify areas that need more or less water, nutrients, or pesticides - Plant crops at the best time - Harvest crops at the right time - Optimize their crop rotation plans All of these improvements lead to increased crop yields and lower production costs. It's no wonder that precision farming is taking off in the agriculture industry!
Precision Farming Market Report Attributes
| Report Attribute |
Details |
| Base Year |
2018 |
| Precision Farming Market Size in 2018 |
4 Billion (USD) |
| Forecast Period |
2019 to 2025 |
| Forecast Period 2019 to 2025 CAGR |
15% |
| 2025 Value Projection |
12 Billion (USD) |
| Historical Data for |
2014 to 2018 |
| No. of Pages |
375 |
| Tables, Charts & Figures |
443 |
| Segments covered |
Component, Technology, Application and Region |
| Growth Drivers |
- Rising demand for food due to rapidly increasing population
- Proliferation of big data in precision farming
- Increasing investment in information and communication technology
- Adoption of IoT in agriculture
- Growing uptake of drones for precision farming
|
| Pitfalls & Challenges |
- Low adoption in the developing countries
- Complex data management
- Lack of technological knowledge among end users
|
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The Internet of Things (IoT) is taking root in agriculture, and it's fueling the growth of precision farming. From sensors and GPS systems to automated steering and drones, farmers are embracing these tools to boost their efficiency. Sensors are scattered across the fields, monitoring soil health, temperature, and moisture. They provide constant feedback, guiding farmers on the best conditions for their crops. Automated steering systems use GPS to ensure precise planting and harvesting, reducing waste and improving yields. Drones are also playing a big part. They soar over fields, capturing images that help farmers identify areas where they need to adjust their strategies. For example, drones can spot early signs of disease or nutrient deficiencies, allowing farmers to intervene before things get worse. One example of this technology in action is QuestUAV's DATAhawkAG package. It combines a drone with a special camera that can capture five specific colors of light reflected by plants. This helps farmers analyze plant health and identify areas that need extra attention. All in all, the growing use of IoT and drone technology is revolutionizing precision farming, helping farmers make better decisions and boost their yields.
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In the precision farming component market, the hardware segment is expected to dominate the market in 2025 with a share of above 70% due to the huge installation of devices including sensors, smartphones, cameras, and UAVs. These devices can be installed on various types of farming equipment such as tractors and harvesters. The penetration of the precision farming technology will compel vendors to introduce new hardware devices with better location & data processing capabilities.
In this segment, sensors will dominate the precision agriculture market in 2025 with a share of over 18%. Farmers and researchers are deploying sensors, which will help them in better monitoring their crop health. The players operating in the market are introducing advanced sensor-based products, which can provide quantitative metrics about the crop health. For instance, in March 2017, SLANTRANGE Inc. introduced a new 3p multispectral sensor system for agricultural drones, which provides quantitative metrics about the crop’s health and enables growers to effectively scale their operations.
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The high-precision positioning systems held a dominant share of over 27% of the precision farming market in 2018 due to the extensive use of GPS and GNSS systems. These technologies are widely used to determine & process location-based data. Moreover, precision farming technologies employ GPS to enhance the efficiency of processes and reduce the unnecessary expenditure on agrochemicals, fuel, and seeds. In addition to the spatial data provided by GPS, the technology along with the farm management software can be utilized for inter-vehicle communication and automated record keeping.
The yield monitoring application segment held a major portion of over 24% of the market in 2018. The yield mapping systems make use of different types of sensors, such as grain moisture sensors, grain flow sensors, and header position sensors along with GPS antennas & receivers, to collect relevant crop-related data for optimal planning and crop management.
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The field mapping precision agriculture market is projected to grow at a CAGR of over 16% during the forecast timeline due to the increase in the use of GPS & GIS systems, which will help to gather real-time data and enable the analysis of a huge geospatial data set. These systems facilitate field mapping, soil sampling, and farm planning and help farmers to adopt effective soil or plant treatment strategies, increasing farm production.
In the coming years, North America is set to dominate the precision farming market, with an expected market share of over 32% by 2025. This growth is fueled by the increasing use of technology and machinery in agriculture. Farmers are becoming more aware of the benefits of precision farming, such as improved crop quality. New initiatives are also being launched to bring innovative technologies to the industry. The US government has recognized the importance of connectivity for precision farming and passed the Precision Agriculture Connectivity Act in 2018. This law helps address the need for reliable broadband internet in crop-growing areas. The government has also formed a task force to recommend policies for expanding broadband access in the countryside.
Precision Farming Market Share
Some of the leading vendors of the precision farming market are
- Agribotix, LLC
- AgSense LLC
- Boumatic LLC.
- AGCO Corporation
- CropMetrics LLC
- AgSmarts Inc.
- Deere & Company
- Dickey-John Corporation
- Delaval Corporation
- Farmers Edge Inc.
- CropX Inc.
- GEA Group AG
- Monsanto Company
- Precision Planting
- Trimble Navigation Limited
- Raven Industries Inc.
- Topcon Positioning Systems Inc.
The companies operating in the market are adopting strategies, such as collaborations and acquisitions, to diversify their product portfolio and gain more market share. For instance, in September 2017, AGCO completed the acquisition of Precision Planting LLC equipment business from The Climate Corporation, a subsidiary of the Monsanto Corporation. The acquisition was intended to acquire and further develop Precision Planting’s capabilities to provide innovative & practical solutions for solving customers’ farming challenges. The acquisition also strengthened AGCO’s position as a full-line partner for growers globally.
Some precision farming vendors are expanding their distribution network to cater to a wider customer base in collaboration with other players having strong regional presence. For instance, in March 2017, Deere entered into a channel distribution agreement with Agri-Trend Group of Companies. Under the agreement, Deere dealers will help farmers to implement new technologies by leveraging Agri-Trend’s knowledge base.
Precision Farming Industry Background
Back in the early 1980s, farmers got a boost with GPS and yield monitors. These gadgets helped them collect and crunch data about their crops. A few years later, handheld devices became the go-to tools for farmers. With these gadgets in hand, they could mark out their fields, take soil samples, and keep an eye on their crops. But along the way, farmers and researchers hit a snag. Handling all that data was a real headache. That's when smart tech came to the rescue. IoT sensors, drones, and smartphones joined the farming scene, collecting data in real-time to give farmers a leg up on boosting their yields. And here's the icing on the cakeAI and Big Data analytics are jumping into the game. These technologies will only add to the already thriving precision farming market in the coming years.
